Leverage Shares unveils white label ETP platform

Jul 13th, 2022 | By | Category: ETF and Index News

Leverage Shares, a provider of tactical single stock ETPs, has announced its entry into Europe’s sparsely populated ETP white labeling market.

Raj Sheth, Commercial Director at Leverage Shares

Raj Sheth, Commercial Director at Leverage Shares.

Catering to the increasing number of asset managers seeking to introduce investment strategies in Europe, Leverage Shares’ white labeling platform will provide these firms with the infrastructure to build and launch ETPs without having to establish their own full-service business.

White labeling platforms aim to lower the barriers to entry for prospective ETP issuers by offering a full package of services including product development, compliance, capital markets, sales, marketing, and distribution.

According to Leverage Shares, its platform will be able to deliver starting prices that are 70-90% lower than existing white labeling market rates, opening up the opportunity for even relatively small fund managers to have their own ETP.

Leverage Shares’ white-label platform debuted its first product last month with the launch of the actively managed Kronos Strategy ETP (KRON LN) on London Stock Exchange. KRON seeks to outperform mainstream US stock market indices over a full market cycle by utilizing a trend-following strategy that alternates between short and long US equity exposure.

Raj Sheth, Commercial Director at Leverage Shares, said: “As a pioneer in single stock leverage ETPs, we have built a remarkable track record and platform capacity for efficiently launching ETPs. Our experience, costs, and bandwidth offer a one-stop platform for fund managers looking to launch their ETP strategy without having to deal with high costs, complexities, and the logistical burden of setting up distribution.”

While Leverage Shares may appeal to prospective issuers from a price perspective, ETPs developed through the firm’s platform will not carry the UCITS designation that is widely perceived as representing safe and well-regulated investments in Europe. As UCITS funds are popular with investors looking to invest across Europe, the lack of the UCITS framework may dissuade some clients.

The platform is just the third ETP white labeling service in Europe.

With Canvas being acquired and assimilated by Legal & General Investment Management in 2017, the only active white labeling platform in Europe over the past few years has been the independently owned HANetf. HANetf, which debuted its first ETP in September 2018, currently boasts a roster of 44 products collectively housing around $1.7 billion in assets.

Just last month, crypto issuer Iconic Funds announced its white labeling ambitions with the firm reportedly in talks with several asset managers to introduce nuanced crypto asset ETPs in the near future.

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